The ESI Act states that it is compulsory for any establishment employing 10 or more people to be registered under the ESI Act. 15,000/- per month as wages/ salary. Employees’ State Insurance Corporation (“ESIC”) is a statutory corporate body set up under the ESI Act 1948, which is responsible for the administration of ESI Scheme. Generally, employers may have to make payments using stamps by affixing them upon books, cards, etc. The government has reduced the contribution under the Employees’ State Insurance (ESI) Act to 4% from 6.5%, a move expected to increase the takehome salary of workers as well as reduce the financial burden of employers. FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Now, as per the provisions of the ESI Scheme, such an employee would continue to pay his share of contribution towards the ESI Scheme till 30th September, 2019. The rate of contribution by employer is 4.75% of the wages payable to employees. C 12 % . The ESI Act exercises its function through the Employees’ State Insurance Corporation, established via Section 3, a body created to maintain social security.It was established on 24 February, 1952. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Under the ESI Act, employers and employees both contribute their shares respectively. If an employer convicted under the Act commits the same offense again, he may receive imprisonment up to 2 years. Employer shall not dismiss, discharge or reduce the wages or otherwise punish a covered employee during the period he / she is in receipt of Sickness Benefit or Maternity Benefit etc. Employees working in establishments and contributing to the Employees’ State Insurance (ESI) will now have something to cheer about. 10 The employer’s share of contribution under the ESI Act is A 4.75 %. The employees’ contribution is at the rate of 1.75% of the wages payable to an employee. Under Section 39 of the ESI Act, the employer is responsible for making contributions in respect of an employee to the Employees' State Insurance Corporation with respect to each wage period within 21 days from the last day of the calendar month in which such contributions become due (i.e. As per the latest rules laid out by ESIC, the employees get 0.75% deducted from their respective gross salaries, whereas the employers make an ESI contribution of 3.25% of the employee’s gross pay towards ESI. 23,000 from July, 2019. Currently, the employer’s contribution is 3.25% of the wages, and that of employees is 0.75% of the wages payable or paid in every wage period. Employees, earning 01/07/2019) Particulars: Current Rate: Reduced Rate: Employer Share: 4.75%: 3.25%: Employee Share: 1.75%: 0.75%: Total: 6.50%: 4.00% Please enable Cookies and reload the page. The employer must contribute 4.75% and employee must contribute 1.75% of the wages for ESI. Government puts out draft pre-pack scheme, Data Privacy: Concern over WhatsApp’s new policy, Pandemic, vaccine and controversy: Real test begins now, What India Craves: Most searched foods in India from January to December 2020. The ESI contribution rate, which had remained unchanged since January 1, 1997, is being reduced from July 1, 2019. In a press release issued by Ministry of Labour & Employment, the GOI has decided to reduce the rate of contribution under ESI Act from present rate of 6.5% to 4%, wherein employer’s contribution is reduced from 4.75% to 3.25% & employees contribution from 1.75% to 0.75%. Under the ESI Act, employers and employees, both contribute their shares respectively. 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